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Tax hike adds to woes for low-income households in Japan

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Her husband and eight children

Wanna save money? Stop popping out babies!

-10 ( +22 / -32 )

"Tax hike adds to woes for low-income households in Japan"

ya think?

19 ( +20 / -1 )

"Japan has given preferential treatments to the strong by lowering the maximum rate of income tax and corporate tax, and it has raised the consumption tax to make up for the loss, and as such is not acceptable to the people," Inomata said.

Too right.

17 ( +19 / -2 )

Consumption tax is a sure way to collect taxes. Income tax is dodged by corporations and individuals.

9 ( +14 / -5 )

Her husband and eight children, aged two to 24, use a large quantity of toilet paper rolls and detergents everyday but such items were not exempted from the tax hike.

You have a 24 year old, living at home, are getting subsidies from the government for the children, until they are at least teenagers, and while things might be tight, you DO have options!

What about having the 24 year old WORK and pay room and board?

I wonder how many times a year you take your kids to Disneyland!

6 ( +18 / -12 )

@therougou

Don't judge them. They are doing their part to repopulate Japan.

The tax increase is ridiculous and unjustified. Most things in Japan are unaffordable by basic people and this tax increase furthers that when you factor in that corporations had their taxes reduced as well as those among the top 1%.

15 ( +20 / -5 )

Taxing food?

Because the poor don’t have to eat?

I hear restricting calories leads to longer lifespans...

8 ( +10 / -2 )

The other day there was a report on here about 70% of Japan's politicians have a history of nepotism involved. Many of these people have no idea about the plight of the working poor. They've never experienced it.

Yet they pass these inane laws (lowering corporate tax rates; raising the sales tax and raising them in a convoluted way; barely raising the minimum wage etc.) that hardly helps the majority of the populace.

Just make food, including convenience store's, non-taxed. Make everything else, including restaurant's food 10%, period.

22 ( +22 / -0 )

They should implement a VAT system like a lot of other countries. High taxes on luxury items and low tax on essential items.

The idea that you pay the same amount of tax on 50inch flat screen TV or a vintage bottle of wine as you pay on provisions like rice and toilet paper is ridiculous.

17 ( +18 / -1 )

Abenomics. Increase taxes for the working population, lower the corporate tax.

18 ( +18 / -0 )

And, due to stagnant salaries and 60% of workers being on semi-permanent or part time contracts the number of low income families is increasing rapidly. This is Abe’s third arrow, right up the butt!

14 ( +16 / -2 )

By the way, I learned this morning that, if you pay for your goods with a SUICA card, you don’t pay tax on it.

-1 ( +0 / -1 )

I very much enjoyed the yesterday morning news program on Asahi, where one of the hosts whose name i always forget said "the bottom line is that, either the welfare has to be reduced, or taxes raised". He pretty much summed it up very well. Welfare is a ponzi scheme.

5 ( +8 / -3 )

By the way, I learned this morning that, if you pay for your goods with a SUICA card, you don’t pay tax on it.

Source?

4 ( +4 / -0 )

Eight children???

This is the reason they are broke !!..

-6 ( +12 / -18 )

By the way, I learned this morning that, if you pay for your goods with a SUICA card, you don’t pay tax on it.

i just paid for my morning coffee with Suica. Price was exactly the same. Are you sure you don’t mean that charging it doesn’t incur taxes and fees?

5 ( +5 / -0 )

The tax hike is trying to solve a problem that it will actually make worse. Japanese people simply aren't having enough babies because family formation is unaffordable for most people with a "good job." "Good jobs" are nearly all located in urban centers, keeping the cost of living high even as the countryside dries up, and most Japanese companies pay their new hires very little for years. This means that, in Tokyo, an average salaryman isn't even ready to think about starting a family until they are at least 30.

So people don't have enough kids, so the tax base shrinks. Raising the consumption tax means less kids which means a smaller tax base.

11 ( +11 / -0 )

Eight children??? This is the reason they are broke

considering Japan’s population problems, this family should be on TV as an example of one that is helping society...

10 ( +15 / -5 )

Among other measures to minimize the negative impact of the hike, the government is offering low-income households and families with children the chance to buy vouchers for 20,000 yen ($180) that allow them to purchase 25,000 yen worth of items.

Idiotic measures thought up by overpaid bureaucratic fat cats with no idea.

Japan has given preferential treatments to the strong by lowering the maximum rate of income tax and corporate tax, and it has raised the consumption tax to make up for the loss, and as such is not acceptable to the people," Inomata said.

Precisely.

14 ( +14 / -0 )

Can anyone shed any light on how this 'cashless' 3%/5% discount works?

Is it something you have to sign up for somewhere (if so where)?

Do you just get an immediate automatic 3/5% discount on the price, or get some kind of points back? (in which case, is it some kind of centralized government points, or the existing card points? )

I have a Suica card, a J-Debit card and a prepaid visa card... none of which have any kind of points scheme.

Do I just use them as usual and pay 3/5% less? I can't find any clear info on how it all works.

PS/ It's the first I've heard of these 20,000 yen vouchers as well. Seems like the hometown-tax thing in that it mainly benefits people who have enough spare cash lying around to make large one-time payments in order to get a bigger benefit down the line.

2 ( +2 / -0 )

Yet they pass these inane laws (lowering corporate tax rates; raising the sales tax and raising them in a convoluted way; barely raising the minimum wage etc.) that hardly helps the majority of the populace.

Aother insanity is that the populace keeps voting these same blue spoon fed LDP fat cats back in .

13 ( +13 / -0 )

I very much enjoyed the yesterday morning news program on Asahi, where one of the hosts whose name i always forget said "the bottom line is that, either the welfare has to be reduced, or taxes raised". He pretty much summed it up very well. Welfare is a ponzi scheme.

The only long-term sustainable solution is going to involve cheaper medical interventions that allow the elderly to keep working by extending the period of good health by years or eventually even decades.

0 ( +1 / -1 )

it mainly benefits people who have enough spare cash lying around to make large one-time payments in order to get a bigger benefit down the line.

can confirm. I’m in the highest tax bracket and my family received a letter yesterday with details how to get (ours was 4000yen for 5000yen vouchers, just one child though)

Possible I’m wrong, but it doesn’t appear to be means tested

1 ( +1 / -0 )

"Northern European nations have high consumption tax, but as they also provide high levels of social welfare, most people accept the burden," Explains that Japan's Abe govt. and cia. policy is to approach Scandinavian social system? Only to think about the natural disasters happening these days in Japan, tax money of come and go + national bond to increase every year is completely an absurdity. Those leaders of lip services for next elections, very few people reactions to protest against governmental system will create more poverty when the promises of the leader to hike tax won't be executed and more people to find poverty a routine. Japan to be one of the top-leader nation in G7 and this comparison with Northern European high levels of social welfare...Hmm, it's really the time to think what is this world of absurdity, when aftermath routine and political senseless is the same of the air we breath.

0 ( +1 / -1 )

You get what you vote for.

14 ( +15 / -1 )

Abe is Japan's greatest manmade disaster

6 ( +10 / -4 )

Can anyone shed any light on how this 'cashless' 3%/5% discount works?

Is it something you have to sign up for somewhere (if so where)?

Do you just get an immediate automatic 3/5% discount on the price, or get some kind of points back? (in which case, is it some kind of centralized government points, or the existing card points? )

I have a Suica card, a J-Debit card and a prepaid visa card... none of which have any kind of points scheme.

Do I just use them as usual and pay 3/5% less? I can't find any clear info on how it all works.

PS/ It's the first I've heard of these 20,000 yen vouchers as well. Seems like the hometown-tax thing in that it mainly benefits people who have enough spare cash lying around to make large one-time payments in order to get a bigger benefit down the line.

Pretty simple really.

Food related costs are taxed at 8%.

https://cashless.go.jp/consumer/

When using cashless, the discount is only implemented by stores that have the Cashless mark and only if your payment method also supports it.

The discount can be implemented in two ways:

A point system→ you get points after the fact through your respective point system. (think reimbursement)

I.E if I use Rakuten to pay, I'll get the discount as an additional 2% ~ 5% Rakuten points

On site discount → The store just deducts a certain amount (usually 2%) from the tax.

Chain stores = 2% discount

Mom and Pop stores = 5% discount (up to)

The thing is, these stores have to register with the government in order to get this discount, so not all stores have this discount applied to them.

In regards to you, Suica has a points system. You can use the points to charge your Suica card.

Prepaid visa cards aren't applicable to the points system.

The J-Debit card is only applicable if the bank that backs the card has registered. *It seems most of them have. But you can check it here: https://cashless.go.jp/consumer/non-bin-settlement-company-typeA.html

Note: To get points back you can only use the service that the store has registered. I.E even if they accept LINE Pay, if the Cashless poster doesn't say they registered it, you won't get points back.

3 ( +3 / -0 )

Consumption taxes have become the capitalists' and their politician enablers' preferred method of squeezing the masses; in Japan it's as easy as taking candy from a baby, given the gerrymandered voting system crafted by the LDP and the dis-and misinformed supine electorate that continues to take lying down whatever is dished out to them. To quote the guy with "the best tweets": Big Consequences!

10 ( +10 / -0 )

Major advertiser Hakuhodo Inc. conducted a survey in March on 2,300 people in their 20s to 60s and found about 70 percent of respondents calling the latest tax hike more burdensome than the previous hike in 2014 from 5 percent.

> The percentage was even higher among women in their 20s to 40s at nearly 80 percent, with many of them citing increased costs for child raising and education.

Oh really, where were they during the last elections then?

2 ( +3 / -1 )

the government is offering low-income households and families with children the chance to buy vouchers for 20,000 yen ($180) that allow them to purchase 25,000 yen worth of items.

Why "families with children"?

I have no need of a 5,000 yen cashback, but bought my vouchers the other day. The plan is to spend as usual, but pay with the vouchers instead of cash, until the vouchers run out.

Net-net, the 5,000 yen is pocketed by someone who doesn't need it.

Such bad, ineffective policy. Well, I hope that I am in the minority and it is actually going to help people who need it (but I don't know how it will help once the vouchers have been spent).

1 ( +3 / -2 )

If the government is going to keep the retirement aged working, thus still paying taxes, why even raise the tax in the first place if its too pay for supporting a system. The numbers do not add up. It's just another coverup and bogus excus to squeeze the poor and working stiffs as in the old days. The mega rich buy the laws and pay their way out with no punishment while it is much different for everyone else. The cost of getting even a hair cut is also increased, time to use my own scissors but can't afford it anymore.

re" "Japan has given preferential treatments to the strong by lowering the maximum rate of income tax and corporate tax, and it has raised the consumption tax to make up for the loss, and as such is not acceptable to the people," Inomata said."

The rich simply never pay.

6 ( +7 / -1 )

Cashback,Cashless, Points?

Register with a smartphone and/or computer?

Now you can be tracked and filed for suspicious behavior!

All this takes time and effort, not to mention privacy concerns so I will stick with cash

6 ( +6 / -0 )

@hustleToday  

By the way, I learned this morning that, if you pay for your goods with a SUICA card, you don’t pay tax on it.

Food and beverage, beside liquor they still 8%. Whatever your payment method is.

1 ( +1 / -0 )

@kurisupisuToday 

Cashback,Cashless, Points?

Register with a smartphone and/or computer?

Now you can be tracked and filed for suspicious behavior!

All this takes time and effort, not to mention privacy concerns so I will stick with cash

Govt won't stop with mynumber from time to time they just want more than that, cashless campaign after tax hike it's easy way to do that.

2 ( +2 / -0 )

this tax increase furthers that when you factor in that corporations had their taxes reduced as well as those among the top 1%.

I have a different perspective that I'd like to share!

Corporations in Japan get taxed at higher rates (30%) than corporations in Sweden (22%). Hmmmm!

I don't know what Japan's 1% even is. Minato-ku residents? And where is this reduction that only some 1% of Japanese tax payers get?

1 ( +1 / -0 )

considering Japan’s population problems, this family should be on TV as an example of one that is helping society...

No. Octomom here is creating her own problems by having more children than she can afford to take care of. This is not only irresponsible but immoral as you are forcing children to be raised in less than ideal environments which can hinder development. It's tantamount to child abuse. Many families are poor for this reason and then they expect society to foot the bill.

0 ( +4 / -4 )

"Japan has given preferential treatments to the strong by lowering the maximum rate of income tax and corporate tax, and it has raised the consumption tax to make up for the loss, and as such is not acceptable to the people," Inomata said.

There are industries sector in Japan that have no bright future at all but still received govt subsidies. Also don't forget about nationalistic agenda that cost lot of money.

4 ( +4 / -0 )

Anyone who has more than two children in this day and age is very irresponsible. Eight kids?!

-9 ( +2 / -11 )

I have a question: Why isn't the newspaper not internet online news, but actual newspaper hard copy not taxed? Everything is else is. Does it make sense to tax water from the faucet yet bottled water is not? Both are necessity items for some the faucet is just as drinkable source of life yet it is taxed? Why wasn't this issue raised by the media. I agree with the politician stating the corporate tax should be raised not lowered. The corporate greed is already out of control and either way the tax and prices still go up while the wages remain the same or eliminated altogether.

4 ( +4 / -0 )

Among other measures to minimize the negative impact of the hike, the government is offering low-income households and families with children the chance to buy vouchers for 20,000 yen ($180) that allow them to purchase 25,000 yen worth of items.

The number of vouchers people can purchase depends on the number of their family members and children, but many say they do not have enough money to buy them and want the benefits directly paid instead.

"I can barely make ends meet. I have no room for making bulk purchases before the tax hike or buying vouchers," said a 36-year-old single mother in Ichihara, Chiba Prefecture, with children attending an elementary school and a junior high school.

It's sad to hear these stories. Lot of govt policy just missed their target, do they even care about what's really happen? Few months back Japanese FSA gave estimation on how much money retiree need in order to live their retirement and govt decide ignore it instead using it as official reference.

4 ( +4 / -0 )

The measures to help the worse-off sound like they are too complicated. Just raise child benefit, already paid as cash into people's bank accounts. Don't expect people to use apps or computers or read newspapers poor people can't afford, or to put up money to get a benefit. Doing it that way means many of the most needy will miss out.

I don't like tax increases, but Japan has a lot to pay for and empty coffers to do it with. As an alternative strategy, I think properly mobilizing the female half of the population would create all manner of economic opportunities and development that would support the current level of welfare, but for various reasons that does not happen. I write this during office hours with my own wife at my kids' school doing some compulsory task for a "kamameshi" cookery event.

3 ( +3 / -0 )

This is just yet another symptom of the system installed post-1945.

Get ready for more such elite-friendly measures down the line, unless people begin to wake up to how the LDP came to power and who put them there.

2 ( +3 / -1 )

I don't know whether to laugh or cry.....the govt is literally doing what will KILL their own country, shear lunacy!

6 ( +6 / -0 )

“Her husband and eight children, aged two to 24,”

There’s no information given as to whether 24-year-old child’s working and contributing to the household, in school, in school or training, is a lazy layabout, or whatever. On what basis are people criticizing that child?

rgcivilian1, “Why isn't the newspaper not internet online news, but actual newspaper hard copy not taxed?”

“Does it make sense to tax water from the faucet yet bottled water is not?”

Newspapers are taxed, and now there will be different rates for those bought at a newsstand etc and those delivered to your home.

Both bottled water and tap water are taxed. Mineral water in a plastic bottle from the supermarket will be 8% because it’s assumed people mainly only drink it. Tap water will be at 10% because it’s used for many other things besides drinking.

Newspapers and water were two of the examples all the tv shows were using to explain the convoluted system.

1 ( +1 / -0 )

If you are looking to avoid hurting the poor while at the same time raising tax revenue, hiking the consumption tax is the worst way of doing so.

Income and other taxes can be varied according to levels of income or wealth so that the poorest are spared the sting. Consumption tax though hits them the hardest of all since they have no choice but to spend basically all their income on things that are subject to the tax.

The exemptions the government has created to offset the effects of the tax hike on the overall economy also for the most part don't benefit the poor. They have exemptions for house and automobile purchases which, by definition, can only be taken advantage of by people well off enough to be able to afford to buy a house or car.

And the coupons are a joke. We got them in the mail the other day. its basically just a one time 5,000 Yen giveaway, with a great deal of hassle involved for anyone who wants to get it, which is nowhere near enough to make a difference.

5 ( +5 / -0 )

Rgcivilian, oops, I must apologize to you. I just realized I misread your question as saying why aren’t newspapers taxed, the opposite of what you actually wrote. Very sorry.

1 ( +1 / -0 )

"It's scary to think that prices have risen for everything aside from food," said a 43-year-old woman who works part time to help sustain her family.

> "I can barely make ends meet. I have no room for making bulk purchases before the tax hike or buying vouchers," said a 36-year-old single mother in Ichihara, Chiba Prefecture, with children attending an elementary school and a junior high school.

> A woman in her 40s who is on welfare said that when her elementary-school-age daughter asked for new clothes, she told her they would have to save up by "eating sprouts for a while."

Govt always push female in Japan by saying ridiculous thing so they have more children but in reality, once they have child various assistance that can help family to ease their burden is really needed. So far no concrete meaningful follow up to address this issue so far.

https://www.theguardian.com/world/2019/feb/05/japans-deputy-pm-blames-women-for-nations-falling-population

3 ( +3 / -0 )

The evidence of the foolish cost of socialism.

-3 ( +3 / -6 )

If the government want to increase the birthdate in japan this is not the way to do it. This tax hits those on low incomes much more than the sports car drivers. There are other ways to increase taxes, such as on drivers or those with 100 million yen homes. This increase will drive people to spend less and save more. Really didn’t agree with this increase so quickly after the last one. Shame on you Shinzō..

4 ( +4 / -0 )

Nator, “I have a Suica card, a J-Debit card and a prepaid visa card... none of which have any kind of points scheme.”

Suica discontinued the Suica Point Club In Spring this year. But you can now get JRE points. As with SPC you will need to register your Suica card online to participate.

0 ( +0 / -0 )

8 children with low income.... your poverty has nothing to do with tax increase...

anyhoo.. just use cashless and there is no tax increase.

-6 ( +2 / -8 )

We will have to buy 2% less.

5 ( +5 / -0 )

The vast majority of people in poverty in Japan are pensioners and single mothers. There should be a tax exemption or rebate for them on the purchase of goods and services necessary to sustain life, from food to medical care to textbooks and school uniforms.

2 ( +2 / -0 )

I received two of the voucher sheets, since i have 2 children. My childcare costs will go down by 10,000yen a month. I stand to be much better off after this tax rise, and i suspect many others will too.

I have spoken to my friends in Australia and over there the cost of raising children is possibly 10x the cost of what i pay out of pocket, yet they do not have problems with depopulation. The problem is that society here expects parents to put their kids into expensive primary/secondary/high schools and universities, and pay for it out of their own pockets - thats the REAL childcare costs.

4 ( +5 / -1 )

I don’t have little kids in daycare so didn’t pay much attention but I think the news last night said the free daycare scheme starts today.

0 ( +0 / -0 )

So they reduce tax of large business and raise tax on non food items. But you can get vouchers that when bought in bulk, you will get extra in money's worth in vouchers. So indeed it bebefits the families who own and run these business, because of the lowered tax and benefit because they can afford to buy in bulk these vouchers that have a greater buying value than what you paid for. And the rest of you can sulk.

0 ( +0 / -0 )

My family received one voucher, since we have a kid. However, the hoikuen fee for my 10 months old went up 1 man, so we are now paying 6 man for childcare. My city used to charge more for babies under one and it would get a lot cheaper each year after that. Now, there are only 3 categories: 0-2 years, 3 years and 4-5 years. So we’ll be paying 6 man for two more years... I guess they don’t have enough money to make childcare free for older children! I wonder what they are really going to do with all this extra tax money...

4 ( +4 / -0 )

Tried to get a roll of toilet paper yesterday but they were 650yen. Everyone must have bought them before the tax hike and now the stores jacked up the price!

3 ( +3 / -0 )

It'll be less than a month before the government starts scratching it's head and saying, "Why aren't people spending more now that we've increased taxes? It's their DUTY!"

One funny thing about this is a saw people scramble madly to buy tissues, toilet paper, etc., at 310 yen or so per pack, and now they are 280 for at least the time being. haha.

5 ( +6 / -1 )

Interesting so many people are giving thumbs down on my comment about using a SUICA to avoid paying the tax increase. Did you not read the report stating that, electronic payments are exempt? Dang! People are too lazy to check facts for themselves. I saved ¥14 yen on a ¥700 purchase. You can do the math on that, if you are not too lazy.

3 ( +3 / -0 )

@hustleToday

By the way, I learned this morning that, if you pay for your goods with a SUICA card, you don’t pay tax on it.

If you buy food or beverages beside liquor you'll have 8% tax.

You should read comment from @ksteer, those cashless discount only for store that accept cashless payment and those store need to do registration before eligible for giving out those discount. So not all stores, some people in Japan they can have limited option especially they are depend on supermarket near they live, whether have that offer or no.

2 ( +3 / -1 )

@Jason Rigby

So they reduce tax of large business and raise tax on non food items. But you can get vouchers that when bought in bulk, you will get extra in money's worth in vouchers. So indeed it bebefits the families who own and run these business, because of the lowered tax and benefit because they can afford to buy in bulk these vouchers that have a greater buying value than what you paid for. And the rest of you can sulk

It depends on where you live, people in Japan they'll tend to shop nearby and lot of stores where they live just don't offer discount program if you buy in bulk.

2 ( +2 / -0 )

@Alex Einz

anyhoo.. just use cashless and there is no tax increase.

Not all stores have this kind of offer and it's temporary for less than one year, since it only valid until June next year. After that people realize nothing can cover that anymore. Not even cashless method of payment.

2 ( +2 / -0 )

@Sakurasuki - You should read comment from @ksteer, those cashless discount only for store that accept cashless payment and those store need to do registration before eligible for giving out those discount. 

oh, you mean like at convenience stores like I first posted? You will not pay the 2% tax if you use a SUICA in any store that accepts them. Is that clear enough for everybody? Gees!

2 ( +2 / -0 )

yeah it bites, train fares are more, everything has changed. Where is all this money going?

1 ( +1 / -0 )

I don't think food should be taxed at all. Saying that, at least have a tax-exemption on food and other necessities for families with 2 or more children.

1 ( +1 / -0 )

@Do the hustle

You will not pay the 2% tax if you use a SUICA in any store that accepts them. 

Thanks, hustle. My local supermarket does accept SUICA.

2 ( +2 / -0 )

I don't think food should be taxed at all. 

Even starting from Oct 1st food are being exempted from tax, the cost of food production and transportation are not free from tax. So just expect food price will go higher.

3 ( +3 / -0 )

@Cheeba

My local supermarket does accept SUICA.

Not necessarily only SUICA any cashless and stores that listed from link that was given by @ksteer can give rebates from 2 to 5%.

0 ( +0 / -0 )

Japan have to define low , middle and high income. then , Japan have to define the limit of personal assets. As soon as i understood the Japanese tax system 15 years ago, ( in Japan for 32 years ), there are many ways for the wealthy to escape tax. Some very wealthy people even live in the japanese goverment owned falts/ japanese public housing but drive great cars, dine in great restaurants and purchase unseen items to keep their tax low. Or some even try to say that they are poor and live on their friends. There are many kinds of people around japan and in the world.

0 ( +1 / -1 )

Japan have to define low , middle and high income. then 

After seeing what happened when they reject FSA recommendation and how they treat erroneous labour data, if in the future they publish low,middle and high income definition, they might want do that because make them looks good not because they want to know the truth.

https://www.reuters.com/article/us-japan-economy-wages-error/japan-wage-data-credibility-in-doubt-over-erroneous-sampling-idUSKCN1P30M7

0 ( +0 / -0 )

It is really sad that the voice of the poor are not heard in Japan. The voice of the people is clearly suffering with what was once promised a 3% tax which is now at 10% and the corporations pay little to nothing. Also amongst that is 318.45 million yen worth of gifts 20 people at Kansai Electric received, the largest amount of 123.67 million yen went to managing executive officer Satoshi Suzuki, followed by 110.57 million yen for former deputy president Hideki Toyomatsu, and yet will not step down. Clearly if they can profit why are they receiving pension plans. Surely they dont' need it as life money do they? Once again the rich get away and the working poor pay the price in higher taxes, higher prices and lower to no wages.

4 ( +4 / -0 )

Japanese people have just re-elected the same same staff knowing what will happen with the consumption tax.

They must be happy then, no?

3 ( +3 / -0 )

Well I like giving, for ex. 110 yen instead of 108, which is a hassle to make change etc. Not a big deal until you get into big numbers, then it really starts to hurt.

who is getting all this tax money?

0 ( +1 / -1 )

I have a question: Why isn't the newspaper not internet online news, but actual newspaper hard copy not taxed? Everything is else is

Because the army of inaka oldies that dutifully vote for their LDP daimyos each election only read paper.....its just a small concession to the vassals.

1 ( +1 / -0 )

The consumption tax raise is not the problem. Low wages eg. minimum wage is the problem people with higher incomes can afford the tax. NZ for example has 15% tax but public hospitals are free, pension is funded out of the tax take, there is accident compensation, no compulsory health payments- you can join your own health payments system, food is cheap, welfare for poor and disadvantaged people is very good. A newly introduced system of quite a large rebate on winter power charges for everyone.

It is not he government that produces tax money. It is the workers who pay the taxes so it is only right that the government give back to their citizens in meaningful ways.

0 ( +0 / -0 )

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